Italy taxes a purchase from a developer very differently from a purchase from a private seller, and non-residents miss the main discount. How the numbers compare.
In Italy the seller decides your tax regime. Buy from a developer and you pay IVA (VAT) plus fixed taxes. Buy from a private person and you pay registration tax, calculated in a way that often surprises foreign buyers. The gap in cost can be large, so it is worth running both before falling in love with a property.
Buying new from a developer
When the seller is a construction or renovation company, the sale is generally subject to IVA instead of proportional registration tax, and you also pay fixed registration, mortgage and cadastral taxes. The IVA rate depends on the buyer and the property:
- 4% if the purchase qualifies as a prima casa (main home)
- 10% for an ordinary non-luxury home, which is what most non-residents pay
- 22% for luxury categories A/1, A/8 and A/9
- fixed registration, mortgage and cadastral taxes of about EUR 200 each, according to the sources checked
The developer route generally applies to homes sold within roughly five years of completion of the works. Older properties sold by a company can follow different rules, so ask the notary which regime applies.
Buying a resale from a private seller
The standard registration tax is 9% of the cadastral value, not of the price you negotiate, with a minimum of EUR 1,000, plus fixed mortgage and cadastral taxes of about EUR 50 each. Because the cadastral value is often well below market value, the effective rate on the real price can be much lower than 9%. The prima casa rate of 2% is not automatic for non-residents: the sources say you may qualify only if you transfer your residence to the property's municipality within 18 months, and you must keep the home for a minimum period. Check your own case with a notary.
Other costs on both routes
- agency commission: typically around 3% plus IVA, usually paid by the buyer when an agent is involved
- notary fee: one source gives about 1 to 2% of the price
- annual IMU property tax: non-residents pay it with no main-home exemption
- all-in, one 2026 guide estimates total acquisition costs of roughly 10 to 15% on top of the price, which is a rough range rather than a rule
Protections that only apply to buying on plan
Italy has a specific protective regime for buyers of homes that are not yet finished. Under Legislative Decree 122/2005, the developer must provide a bank or insurance guarantee (fideiussione) for the money you pay before transfer, and a ten-year insurance policy covering serious structural defects must be delivered at the transfer of ownership. Ask to see both documents, and ask when the habitability certificate (agibilità) will be issued. A resale has no such statutory package, so a technical survey and a check of planning and cadastral conformity matter more.
Price and energy performance
New homes cost more per square metre. One analysis puts the average gap between new and used homes at about 37%, around EUR 1,800 per square metre, with Milan far above that; another reports that class A homes ask roughly half as much again as the lowest energy classes. These are asking-price comparisons from market studies, not guarantees, so compare actual listings in the same street.
How to choose
- a resale suits a buyer who wants the lowest purchase price and accepts renovation work
- a new build suits a buyer who values low running costs and statutory protections, and accepts the IVA
- always ask for the energy certificate (APE) and the planning and cadastral conformity of a resale
- price both tax routes with the notary before making an offer
FAQ
Can a non-resident get the 4% IVA or the 2% registration rate? Only if you meet the prima casa conditions, which for a non-resident generally means moving residence to the municipality within 18 months. Is registration tax charged on the price? On resale from a private seller it is charged on the cadastral value. What guarantees exist on a new build under construction? A bank or insurance guarantee on payments and a ten-year defect policy at transfer. What is agibilità? The certificate that the building is fit for use.
How we help
D.H. Realting can help you compare new-build and resale options in Italy and prepare the right questions for a developer, agent and notary. This article is general information, not legal, tax or investment advice. Rates, thresholds and conditions change, so confirm every figure with an Italian notary or tax adviser before you commit.